Facebook to Test Its Own Competitor to PayPal

Facebook is testing a new mobile payments tool that could pose a challenge to PayPal. AllThingsD reporter Jason Del Ray has exclusive details on digits. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... I ... we will all payments may be coming to Facebook will commit Digits I'm Simon Constable Justin Jason Del worry all ... the things that you'll joins us now and we hope you with this exclusive story for much less money skips up ... so tells about this ... or so of ... Facebook ... will soon be launching a test ... of where ... users of Facebook who provided the company with their credit card information ... will be able to make purchases on e commerce ... mobile apps ... by simply ... entering their Facebook ... username and password ... and and and they're all their pain and information will be pre populated with the idea being that this will make for ... a better experience ... when shopping on mobile devices ... can amass them that cost will be will be a lot of good fun for ... the use of oodles of money making for ... Facebook and Facebook comments are they looking to take on PayPal ... so lets you know that's an interesting question um ... in my they may not be their initial intention but the initial fire is definitely competitive with PayPal in some ways ... so to get new ones follow me just explain quickly ... so the so the focus for now is on the user experience making the tech help process on e-commerce apps ... simpler on mobile phones ... they're not actually processing the payments ... which they ... have been outdone ... by in this increasingly mobile world ... one of the palace because the Tuesday e-commerce sites use ... we can help you streamline your checkout experience ... by having people simply ... awe pollute ... their town ... simple it simply I enter their PayPal credentials rather than having to go to all their shipping ... and a credit card information ... so ... yes it is currently competitive in some ways with PayPal ... long-term depending on how it shakes out the the the very of the ... mountain on Facebook has managed to ... somehow step along the for this evil privacy land mines over the years ... seems to come up repeatedly do we trust Facebook to look tough confirmation ... in no way back we are happy with out what what's the view on maps ... so um ... so that that's the that's one of the big questions you know there ... Facebook doesn't relieve some of the people ... for the farm information they have on file ... but it has been tough to imagine ... that have quite a bit through ... in game purchases and and then perhaps ... to a lesser extent people purchase Facebook gift ... but you know I'd I'd talk to retail analyst firm Forrester Research yesterday and ... and three for on this and and ... working in the unknown the landscape only is that I'm ... people traditionally do not trust social networks and Facebook with this type of information ... about ... out of the day it Facebook tries to ... to wrap this up the on the tax ... demand Jason Del thing is I'm I'm not saying mom I'm going on on Facebook I've not seen anything I wanna buy ... have on ... my promise to my friends but I mean you know I cannot seem Tronox also this is I actually wanted for now for ... he's not a bit of a problem ... well says so your ... job is to see other states to so to start with one eye with partner ... of an e-commerce company called Jack the words ... the wool while now their ... users to to purchase the purchases by walking in the face of ... it there are users have previously given that the credit card information ... so ... I Facebook could be thinking if there's demand for this all ... off of Facebook of Prada ... perhaps people will find it so easy that they wanna come to Facebook and get their credit card ... but there are there are people play games and make purchases within those games on Facebook ... um ... I just happened Dome ... to not be one of the men and sounds like you are not ... the ... accidents ... so when we expect this of this this from the Navy you or I can use ... um it over with the start of testing it ... it in in the next month or so I is this is what I ... what I've been told ... and out depending on ... you know that they may only have one wants for her and the company doctorate or they ... may end up signing on a few more out of workers ... that that that remains the scene ... interesting stuff keep us apprised Jason so I will things until we appreciate time so ... they get ... Moslem Qassam on that was digits